Bangchak Corporation Public Company Limited celebrated its success in the first half of 2024, marking its 40th anniversary as it steps into its fifth decade. This milestone year has been characterized by synergy realization, transformation, and growth, all driven by a clear strategic vision that coordinates excellence within the group to enhance efficiency, ensure continuous business expansion, and maintain financial discipline. The company targets an EBITDA of THB 100 billion by 2030, reaffirming its leadership in the Thai energy sector and establishing a solid foundation for sustainable growth.
Chaiwat Kovavisarach, Group Chief Executive Officer and President, Bangchak Corporation Public Company Limited, along with Bangchak Group executives, disclosed that during the first half of 2024, the Bangchak Group demonstrated its strength and adaptability amidst challenging market conditions. With a clear vision and efficient management, the group achieved stable and sustainable growth.
The "new leaf" logo, reflecting a strong image as a modern and environmentally friendly energy leader in the country, has been well received by customers and society. This has resulted in a significant increase in sales volume at service stations, confirming customers' trust in the Bangchak brand and the quality of its products, which continue to expand in service offerings. In 2025, Bangchak will commence the production of Sustainable Aviation Fuel (SAF), which will play a crucial role for both the company and the nation, contributing to sustainability for Bangchak and society as a whole as a sustainable alternative for the aviation industry. With Bangchak Group's commitment to being a leader in sustainable fuel development, the company will also pursue strategies under the Bangchak 100x concept to achieve its target of 100 billion baht in EBITDA and grow into a 100-year sustainable organization alongside Thai society.
Bangchak remains committed to driving growth by balancing energy security, energy affordability, and environmental sustainability to achieve net-zero greenhouse gas emissions target by 2050. Key business expansion plans include:
Refinery and Oil Trading Business, and Related Businesses: The focus is on amplifying synergy realization between two world-class refineries, namely Phra Khanong Refinery and Sriracha Refinery, targeting a crude run of 280,000 barrels per day in 2025 from a combined nameplate capacity of 294,000 barrels per day. The aim is to enhance efficiency and reduce operational costs to increase Gross Refinery Margin (GRM), offering a diverse range of products to meet market demands, including expanding the production of high-value specialty products such as Unconverted Oil and Slurry. Additionally, in 2025, Bangchak will lead the production of SAF with a capacity of 7,000 barrels per day, sourcing feedstock through partnerships with oil purchases via the nationwide "Fry to Fly" initiative. SAF is a high-margin product compared to conventional aviation fuel, and its growing demand positions Bangchak Group as a leader in the specialty products refinery market, committed to innovation and sustainability.
Excellence in Marketing Business: The company plans to expand its footprint and strengthen its positioning under the "Greenovative Destination" concept by increasing the number of service stations to over 2,400 by 2030 and capturing a 33% market share, with a focus on high-demand markets. In the retail sector, Bangchak intends to expand into commercial markets in Cambodia, Laos, and Vietnam, improve customer experience, leverage customer relationship management, and enhance the Bangchak brand image through initiatives like Inthanin Coffee and electric vehicle charging stations.
Sustainable Growth through Greenovation: Bangchak Group is expanding its green energy business through the operations of BCPG Public Company Limited, which continues to grow, with a goal of being selected as a SET50 index stock by 2030 and one of the sustainable stocks included in the DJSI index. The strategy focuses on expanding green energy investments in countries where the business is already established and capital recycling to achieve higher returns, while striving towards carbon neutrality with an emphasis on financial discipline and appropriate investment returns. Additionally, BBGI Public Company Limited, a leader in integrated biofuel production, is focusing on asset efficiency and expanding its core business into high-value markets. BBGI aims to be the first CDMO (Contract Development and Manufacturing Organization) in ASEAN by 2025, with plans to produce over 1 million liters per year by 2028.
Enhancing Energy Security through the Petroleum Exploration and Production Business: Bangchak Group established a strong foundation in petroleum exploration and production (E&P) by investing in OKEA ASA in Norway in 2018. The group aims to expand its production capacity to 50,000 barrels per day by 2030 and plans to acquire new E&P assets, particularly in the Asia-Pacific region, to enhance energy security. This strategic move will sustainably add value to the group's E&P business, with the goal of reaching 100,000 barrels per day by 2030.
Platform for Growth and Financial Stability: Bangchak Group is focused on developing a platform for growth that supports robust and sustainable business expansion, enhancing competitiveness, and ensuring energy security, energy affordability, and environmental sustainability. Between 2025 and 2030, the group plans to invest THB 120 billion to achieve a new EBITDA target of THB 100 billion by 2030. These investments are backed by strong market fundamentals, efficiency improvements, and business diversification, creating a balanced portfolio and financial strength. The group's 'A' credit rating from TRIS Rating reflects its capacity to focus on growth opportunities while maintaining strong Return on Assets (ROA) and Return on Equity (ROE).
Way Forward for Growth: The Group is prioritizing long-term business expansion through the development and expansion of new ventures, including technologies for a low-carbon society, the sustainable fuel business, and environmentally friendly energy solutions. This extends to the adoption of digital systems and artificial intelligence (AI) to adapt to global changes and maximize long-term stakeholder benefits.
Bangchak Group is committed to leading the way forward by creating a future through investments and innovations that address global challenges and contribute to a low-carbon society. With a vision of "Crafting a Sustainable World with Evolving Greenovation," the group is committed to achieve Carbon Neutrality by 2030 and Net Zero GHG Emissions by 2050. With a clear vision and robust strategies, Bangchak Group aims for continuous growth, reaching a target EBITDA of THB 100 billion by 2030, ensuring energy security for Thailand and the region, and maximizing benefits for stakeholders and sustainable development.